PBOC to Continue With Liquidity Help as Yi Stays On as Governor
- Central bank to make decision Wednesday as policy loans mature
- Analysts see PBOC continue with cash injection, keep rate flat
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The People’s Bank of China is expected to extend monetary support this week and maintain a key policy rate, after Beijing retained its governor in a leadership reshuffle that signals policy continuity.
The central bank will probably provide 350 billion yuan ($50 billion) to financial institutions through a medium-term lending facility on Wednesday, as 200 billion yuan of the one-year policy loans mature, according to the median estimate of seven analysts surveyed. The net expected increase in liquidity would be less than the 199 billion yuan last month.